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executive agency shall furnish or ar

der this Subpart 14.4, except where
Federal Supply Service, Public Utilities

Management Division, Washington, D.C.

plicability of ownership Government corporation the

District of Columbia, the Senate, the cies and pro

House of Representatives, or the Arch). types and

tect of the Capitol and any activity under Chich include

his direction.
ock products, § 1-4.403 Utility bills, rendered to as:
Essing equip-

ecutive agencies.
Executive agencies shall notify the utl.

ity suppliers with which they do business [Reserved] to provide GSA from time to time, upon Utilities

the request of GSA to the supplier, with

duplicate copies of bills rendered to the 9, 1966, unless

individual agencies for utility services
The particular billing period will be mu-

tually agreed upon between GSA and policies and

the supplier. and eficient § 1-4.404 GSA assistance. y services by

(a) The Congress and the President, lo the declaration of policy in the Federal

Property and Administrative Services 4.4, “utility

Act of 1949, stated an intent to provide services (ex

for the Government an economical and vices), such eficient system for, among other things

, water, and

the procurement of nonpersonal services, es on both

including contracting for and manage r the supply

ment of public utility services (40 0.8.C.
471). In order to implement this policy,
GSA has established an experienced stad

of utilities technical specialists and engl. als Subpart

neers, available to all agencies, to pro nt of utility

vide the necessary capabilities to facil3 within the tate more economical and efficient pro ons and the curement and management of public 0.

utility services by Federal agencies. -s of Under

(b) Agencies not having personnel ment of De

technically qualified to deal with speAdministra

cialized utilities problems and requiring urement of

GSA technical assistance, and other ed (15 FR

agencies having technically qualified

personnel but desiring GSA consulting by the De

assistance should obtain assistance from

the Federal Supply Service of GSA in s Subpart

Washington, D.C., at the address listed tility serv

below in $ 1-4.405, or in the nearest of - sold by a

the ten GSA regional offices through the onsolidated

Federal Supply Service Regional Com-service by

missioner, ey); or (2)

[31 FR 16417, Dec. 23, 1966, as amended at

40 FR 44139, Sept. 25, 1975) those reposes) ob

§ 1-4.405 Submission of information. , or other

All information required by GSA un. er marketent to such

otherwise specified, shall be addressed to istribution

the General Services Administration, Furnish the S Subpart 20406. cy, mixed (40 FR 44139 Sept. 25, 1975)

$14.406 Procurement policy and reg.

ulations.
$14.406–1 Policy.

It shall be the policy of executive
agencies to obtain required utility serve
lces from sources of supply which are
most advantageous to the Government
In terms of economy, efficiency, or serv.
Ice, after Investigating all appropriate
sources. The supplier of & utility service
is usually the sole source thereof. When
more than one source of supply is avail.
able, the service may also be procured
by negotiation since formal advertising
Is usually not feasible and practicable
(see f} 1-3.101 (a), (d): 1-3.202; 1-3.203;
1-3.210; and Subpart 1-3.3 of this
chapter).

$14.406–2 Agency supply arrange

ments. In Implementing the policy stated in 114.406–1, use shall be made by agencies of: (a) GSA areawide contracts 11144.407); (b) GSA long-term contracts ($ 14.408); and (c) consolidated purchase, Joint use, or cross-service by one agency for another agency ($14.409).

in the pro

114.407 GSA areawide contracts.

(8) GSA enters into areawide contracts with various utility suppliers for the furnishing of utility services to Federal agencies located within the service areas of such suppliers. GSA areawide contracts provide that the utility suppller

, upon execution of a Government order in the form of an authorization prescribed by the contract, will furnish, Filthout further negotiation, the services involved in accordance with such of the suppller's rate schedules as are appllcable to such services and subject to all the provisions of the areawide contract.

(b) Unless it is determined that more Advantageous competing services are avallable, each executive agency in the Area covered by a GSA areawide contract shall procure utility services thereunder: Provided, however, that when it s in the best interest of the Government

, an agency may negotiate special hates or special services under an areaTide contract or under a separate

contract.

1) When procuring utility services
under a GSA areawide contract, each

range to furnish to GSA an executed

288

$ 1-4.406 Procurement policy and reg.

ulations. 61-4406–1 Policy.

It shall be the policy of executive agencies to obtain required utility services from sources of supply which are most advantageous to the Government in terms of economy, efficiency, or servIce, after investigating all appropriate sources. The supplier of a utility service Is usually the sole source thereof. When more than one source of supply is available, the service may also be procured by negotiation since formal advertising Is usually not feasible and practicable (see $$ 1-3.101 (a), (d):1-3.202; 1-3.203; 1-3.210; and Subpart 1-3.3 of this chapter). $14.406—2 Agency supply arrange

ments. In Implementing the policy stated in $ 1-4.406–1, use shall be made by agencles of: (a) GSA areawide contracts ($ 1-4.407); (b) GSA long-term contracts (1-4.408); and (c) consolidated purchase, Joint use, or cross-service by one agency for another agency ($ 1-4.409). $14.407 GSA areawide contracts.

(a) GSA enters into areawide con. tracts with various utility suppliers for the furnishing of utility services to Federal agencies located within the service areas of such suppliers. GSA areawide contracts provide that the utility supplier, upon execution of a Government order in the form of an authorization prescribed by the contract, will furnish, without further negotiation, the services involved in accordance with such of the supplier's rate schedules as are applicable to such services and subject to all the provisions of the areawide contract.

(b) Unless it is determined that more advantageous competing services are avallable, each executive agency in the area covered by a GSA areawide contract shall procure utility services there. under: Provided, however, That when it is in the best interest of the Govern. ment, an agency may negotiate special rates or special services under an areawide contract or under & separate contract.

(c) When procuring utility services under & GSA areawide contract, each executive agency shall furnish or arrange to furnish to GSA an executed

counterpart or conformed copy of the order authorizing service connection, disconnection, or change, as set forth in the particular contract.

(d) Upon request, GSA will furnish to Federal agencies a list of GSA areawide public utility contracts, showing in each case the kind of utility service, the servIng utility, and the area served. GSA also will make avallable to Federal agencies, upon request, a copy of any areawide contract. Each contract includes the specimen order form authorizing service connection, disconnection, or change. 81-4.408 GSA long-term contracts.

Executive agencies ordinarily cannot obligate the Government for utility services beyond the current fiscal year. Therefore, afirmative action ordinarily is required in order to renew & contract beyond the current fiscal year. GSA, however, has special statutory authority to enter into long-term contracts for utility services for periods not exceeding 10 years (40 U.S.C. 481). GSA, either on its own initiative or upon request by an agency, will negotiate or assist in the negotiation of a long-term contract for the use and benefit of the agency, 11 a long-term contract 18 justified by one or more of the following circumstances:

(a) Where lower rates, larger discounts, or more favorable conditions of service can be obtained.

(b) Where a proposed connection charge, termination liability or any other facilities charge to be paid by the Government would be eliminated or reduced.

(c) Where the utility supplier refuses to render the desired service except un. der a long-term contract. 8 1-4.409 Consolidated purchase, joini

use, or cross-service. Consolidated purchase, Joint use, or cross-service by one agency for another agency shall be used to procure utility services or facilities when advantageous to the Government in terms of economy, eficiency, or service. (Such methods of procurement do not include cases where utility services are furnished without charge by another Government agency as an incident to space procurement.) A memorandum of understanding, spec. ifying the services or facilities to be supplied and the estimated costs and other

§ 1-4.410

Title 41—Public Contracts, Property Management

conditions under which they will be procured, shall be used in cases of consoll. dated purchase, joint use, or cross-serv. ice. A copy of each memorandum shall be retained in the procuring agency's Alle until the end of the retention period specified in § 1-4.410-6. These memorandums shall be subject to such on-site postreview or periodic reporting as may be required by GSA. f1-4.410 Independent procurement by

executive agencies. 81-4.410-1 General.

(a) In the absence of available GSA areawide contracts (§ 1-4.407), GSA long-term contracts (§ 1-4.408), or consolidated purchase, joint use, or crossservice (§ 1-4.409), executive agencies may procure utility services and facili. ties, within the scope of their authority, by independent procurement for their own accounts, subject to the policy provisions of $ 1-4.406, the procedural provisions of § 1-4.410, and the review provisions of g 1-4.411.

(b) Such procurement may be effected by formal bilateral written contract or by simple procurement documents, such as Government purchase orders or other written requests for service. A standard utility supplier application form or similar document shall not be used, and If a Government purchase order or other written request for service will not be accepted by the utility supplier, the agency shall negotiate a formal bilateral written contract. 8 1-4.410–2 Documentation of procure

ments from regulated utility sup

pliers. Utility services may be procured by executive agencies by a simple procurement document, such as one of those mentioned in § 1-4.410-1, rather than by a formal bilateral written contract. when the utility supplier's rates are fixed or adjusted by a Federal, State, or other public regulatory body, except that a formal bilateral written contract shall be used under one or more of the following circumstances:

(a) The utility service is available from more than one source of supply, in which case such service shall be procured as provided in § 1-4.406–1.

(b) The supplier requires the execution of a contract.

(c) The annual cost of the service to be procured is estimated by the using agency, at the time of initiation of the

service or annual review of the expenditure, to be over $10.000.

(d) A proposed connection charge for connecting the using agency's facilities to the supplier's facilities, a termination liability for discontinuance of service or removal of facilities, the purchase cost or cumulative leasing cost of special facillties, or any other facilities charge to be paid by the agency (whether or not refundable) is estimated to exceed a total of $10,000.

(e) The executive agency concludes that a formal bilateral written contract is in the best interest of the Government 131 FR 16417, Dec. 23, 1966, as amended at 40 FR 44140, Sept. 25, 1975) § 1-4.410–3 Documentation of

pro curements from unregulated utility

suppliers. Utility services shall be procured by executive agencies by a formal bilateral written contract, rather than by a simple procurement document, such as one of those mentioned in § 1-4.410-1, when the utility supplier's rates are not fixed or adjusted by a Federal, State, or other public regulatory body, and one or more of the following circumstances exists:

(a) The utility service is available from more than one source of supply. in which case such service shall be procured as provided in § 1-4.406–1.

(b) The supplier requires the execution of a contract.

(c) The annual cost of the service to be procured is estimated by the using agency, at the time of initiation of the service or annual review of the expenditure, to be over $10,000.

(d) A proposed connection charge for connecting the using agency's facilities to the supplier's facilities, a termination liability for discontinuance of service or removal of facilities, the purchase cost or cumulative leasing cost of special facilities, or any other facilities charge to be paid by the agency (whether or not refundable) is estimated to exceed a total of $10,000.

(e) The executive agency concludes that a formal bilateral written contract is in the best interest of the Government. 131 FR 16417, Dec. 23, 1966, as amended at 40 FR 44140, Sept. 25, 1975) § 1-4.410-4 Negotiations with utility

suppliers. (a) In the event that a utility supplier declines, after appropriate initial request,

290

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8 1-4.406 Procurement policy and reg. counterpart or conformed copy of ulations.

order authorizing service connection,

connection, or change, as set fort 8 1-4.406–1 Policy.

the particular contract. It shall be the policy of executive

(d) Upon request, GSA will furnis agencies to obtain required utility serv

Federal agencies a list of GSA area ices from sources of supply which are

public utility contracts, showing in e most advantageous to the Government

case the kind of utility service, the s In terms of economy, eficiency, or serv

ing utility, and the area served. Ice, after Investigating all appropriate also will make available to Federal ag sources. The supplier of a utility service

cies, upon request, a copy of any a: is usually the sole source thereof. When

wide contract. Each contract inclu more than one source of supply is avail the specimen order form authori able, the service may also be procured service connection, disconnection, by negotiation since formal advertising change. Is usually not feasible and practicable (see $$ 1-3.101 (a), (d):1-3.202; 1-3.203; 814.408 GSA long-term contracts. 1-3.210; and Subpart 1-3.3 of this

Executive agencies ordinarily car chapter).

obligate the Government for utility s 8 1-4.406–2 Agency supply arrange

ices beyond the current fiscal y ments.

Therefore, afirmative action ordina

Is required in order to renew a conta In Implementing the policy stated in

beyond the current fiscal year. G $ 1-4.406–1, use shall be made by agen

however, has special statutory autho cles of: (a) GSA areawide contracts

to enter into long-term contracts 1$ 1-4.407); (b) GSA long-term con

utility services for periods not exceec tracts ($14.408); and (c) consolidated

10 years (40 U.S.C. 481), GSA, eit purchase, joint use, or cross-service

on its own initiative or upon request by one agency for another agency

an agency, will negotiate or assist in 1$ 1-4.409).

negotiation of a long-term contract 81-4.407 GSA areawide contracts.

the use and benefit of the agency,

long-term contract is justified by (a) GSA enters into areawide con.

or more of the following circumstanc tracts with various utility suppliers for

(a) Where lower rates, larger the furnishing of utility services to Fed

counts, or more favorable conditions eral agencies located within the service

service can be obtained. areas of such suppliers. GSA areawide

(b) Where a proposed connect contracts provide that the utility sup

charge, termination liability or pller, upon execution of a Government

other facilities charge to be paid by order in the form of an authorization

Government would be eliminated prescribed by the contract, will furnish,

reduced. without further negotiation, the services

(c) Where the utility supplier refu involved in accordance with such of the

to render the desired service except supplier's rate schedules as are appli

der a long-term contract. cable to such services and subject to all the provisions of the areawide contract. 81-4.409 Consolidated purchase, jo

(b) Unless it is determined that more use, or cross-service advantageous competing services are

Consolidated purchase, Joint use, available, each executive agency in the

cross-service by one agency for anot area covered by a GSA areawide con

agency shall be used to procure uti tract shall procure utility services there

services or facilities when advantage under: Provided, however, That when it

to the Government in terms of econo ls in the best interest of the Govern

efficiency, or service. (Such methods ment, an agency may negotiate special rates or special services under an area

procurement do not include cases wh wide contract or under & separate

utility services are furnished with contract.

charge by another Government ager (c) When procuring utility services

as an incident to space procuremer under & GSA areawide contract, each

A memorandum of understanding, sp executive agency shall furnish or ar Ifying the services or facilities to be su range to furnish to GSA an executed plied and the estimated costs and ot!

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addition, if the procurement document

forth in § 1-4.411-2. If, however, prlor guidelines set forth in § 1-4.411-4. Howagency, it shall follow the provisions set requiring prior review may be prepared

lor signature by any agency official (a) Where a procuring agency refers the proposed procurements specified in

§ 1-4.411-1(a) for prior review by GSA,

and Supply Records), a copy of each exe-
cuted utility service procurement docu-
ment and supporting records is required

to be retained in the procuring agency's the Con

file for a period of 6 years after compleTent of 3 tion of service. During the service period

and the ensuing 6 years, al such docuto any ments and records shall be subject to e entitled

such on-site postreview or periodic re

porting as may be required by GSA. (See Te, hics

also I 14411 on prior review of certain score than proposed procurements by executive the con agencies.)

314411 Prior review of certain prothe Gore

posed procurements. call not be 314411-1 General. any other * Or under

(a) Proposed utility procurements by executive agencies, including proposed contracts, proposed authorizations under applicable GSA areawide contracts, and

proposed memorandums of understandupon and ing for consolidated purchase, joint use, ssors, legal or cross-service by one agency for anthe respec

other agency, shall be subject to prior re

view by GSA or, in the alternative, by the 327-5(c)). procuring agency as described in flEnterprises

4.411-3 below, before execution thereof, See 81 if either of the following circumstances

applies: ontracting (1) The annual cost of the service to be

procured is estimated by the using bcontract agency, at the time of initiation of the (b)).

service or annual review of the expendiErds. Insert ture, to exceed $50.000; or Lions as set (2) A proposed connection charge, h) (2), and termination liability, or any other facilLions under ities charge to be paid by the agency n Subpart (whether or not refundable) is estimated ed contract to exceed a total of $10,000. 1204–1 and (b) Proposed utility procurement speracts under cified in paragraph (a) of this section in Subpart shall be referred to GSA for prior review d in § 1-3. unless the procuring agency has an shall not be established program and personnel techlaw or reg

nically qualified to deal with speciallzed herwise ex

utilities problems, as described in $ 14: (1) or (2). 411-3 below. If prior review is handled he uniform by GSA, it will follow the provisions set • paragraph Form 1685,

review is handled by the procuring Lility Service SA will fur

forth in § 1-4.411-3. In either event any agency

guidelines to be used in such prior reroduction as

views are set forth in $14.411-4.

(31 FR 16417, Dec. 23, 1966, as amended of 51

40 FR 44140, Sept. 25, 1975) periodic re

§ 1-4.411-2 Prior review by GSA.

the guldelines set forth in § 1-4.4114 will be observed by GSA.

(b) Where a proposed procurement is referred by a procuring agency for prior review by GSA, the agency is authorized to complete the negotiation and execution thereof if no comments are made by GSA to the agency within 20 regular working days (or within such lesser pe. rlod as may be agreed upon where time is a critical factor) from the date the proposal, documents, and data relating to the proposed procurement are received by GSA for prior review. GSA will acknowl. edge the date of receipt of the referral

from the agency.
$14411-3 Alternative prior review by

the procuring agency.
(a) Where a procuring agency, as of
the effective date of the regulations in
this subpart, has an established program
and personnel technically qualified to
deal with specialized utilities problems,
adequate to accomplish its own prior re-
View of the proposed utility procure-
ments specified above in § 1-4.411-1(a),
the agency shall notify the Administrator
of General Services if it desires to con-
tinue its general responsibility for such
prior review. This notification to the
Administrator shall give the date, cite
the implementing document, and sum-
marize the review procedures relating
to the agency's current program of prior
review of proposed utility procurements.
Continuation by the agency of its estab-
lished general responsibility for prior re-
view shall not be deemed to preclude
referral of any specific case for prior
review by GSA, whenever desired by the

igency. fbi Any agency having an established program as described in paragraph (a) of this section and continuing its established general responsibility for prior renew shall provide by agency procedure that its review shall be exercised at technical and management levels sufficiently high to assure uniform application of the ther, proposed procurement documents

authority.

arting within the scope of his delegated (0) A copy of each procurement document executed pursuant to $ 1-4.411le) shall be retained in the procuring REncy's file until the end of the retenlion period specified in $14.410-6. In

ons (41 CFR Procurement

292

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